The transaction provides Virgin Racing with additional long term funding whilst LDC achieves an attractive return on its initial investment, together with the retention of a shareholding in the team. The existing Virgin Racing management team will also retain a shareholding in the business. From the 2011 season the team will be known as Marussia Virgin Racing.
LDC's original investment was completed in the summer of 2009 following Virgin Racing's successful entry into the FIA Formula One Championship.
The partnership with Marussia is in line with LDC’s and Management’s long term strategy to establish Virgin Racing as a professional and competitive racing team and a successful commercial business.
Marussia has been a sponsor of the team through the 2010 season and approached LDC about investing earlier this year. Marussia’s ambition is to utilise the Formula One team as a high-profile international marketing platform for their Marussia B1 and B2 cars and other new automotive concepts. The timing of the deal co-insides with the news that Russia will be hosting the FIA World Championship Grand Prix from 2014 onwards.
Darryl Eales, Chief Executive at LDC, commented: “This is excellent news for all stakeholders in Virgin Racing. The team has made tremendous progress over the past 12 months and this is testimony to the commitment and skill of the Virgin Racing personnel. LDC is delighted to remain a significant shareholder and is looking forward to working with Marussia to support the future development of the team.”
“This is the realisation of a dream for Marussia Motors”, confirmed Nikolay Fomenko, President of Marussia. “While manufacturing, launching and marketing the Marussia B1, B2 and other concepts in Europe, we will have a Formula One team to promote these activities and demonstrate to the world that a new car manufacturer has arrived from Russia with truly international ambitions.”
Graeme Lowdon, Chief Executive of Virgin Racing said: ”This is definitely a good news story for Virgin Racing and for Formula One. Marussia Motors has been a much-valued team partner throughout the 2010 season and we are delighted to introduce them formally as a significant shareholder in Virgin Racing. This announcement cements our place on the Formula One grid.”
This partial realisation comes on the heels of recent exits from CMG, Omega Red, VSG and Porterbrook all of which have in combination produced an aggregate IRR in excess of 40%.